SY/T 10023.1-1999 Recommended Practice for Economic Evaluation of Offshore Oil (Gas) Field Development Projects Part 1: Self-operated Oil (Gas) Fields
Some standard content:
ICS75.020
Registration No.: 2586—1999
Offshore Oil and Gas Industry Standard of the People's Republic of ChinaSY/T10023.1—1999
Offshore Oil (Gas) Field
The Recommended Mcthod of Offshore Oil/Gas Field Development ProjectFconomic Evatuation
Part 1 : Self Financcd Offshore Oil/Gas Field1999-02-03 issued
National Petroleum and Chemical Industry Bureau
1999-06-01 implementation
SY/T10023.11999
Policy Specifications
1 Scope
2 Definition
3 Principles and implementation requirements of economic evaluation
4 Basic data of economic evaluation
Economic evaluation parameters
6 Economic evaluation indicators and calculation methods
7 Economic evaluation report
8 Uncertainty analysis
9 Scheme comparison method
10 Financial evaluation of renovation and expansion projects.
Appendix A (Standard Appendix) Economic evaluation report (format) Appendix (Suggested Appendix) Related legal provisions
SY/T 10023.1—1999
In order to make scientific decisions on offshore oil (gas) field development projects and standardize the economic evaluation methods of offshore Baiying oil (gas) field development projects, this standard is formulated based on the current national investment system, fiscal and taxation system, and the characteristics of offshore Baiying oil (gas) field development. This standard is based on the "Financial Evaluation Methods for the Development of Baiying Oil (Gas) Field of China National Offshore Oil Corporation" and the "Economic Evaluation Methods and Parameters for Construction Projects (1993 Edition)" of the national planning department, and is compiled in combination with internationally accepted economic evaluation practices and the practice of economic evaluation of offshore oil (gas) field development projects in recent years. This standard standardizes the economic bargaining method, uncertainty analysis method, and scheme comparison method for offshore self-operated oil (gas) field development projects: the various requirements specified in this standard, involving the economic evaluation method of offshore self-operated oil (gas) field development projects, the drafting and presentation of reports, regardless of their technical content, should be expressed in the same form. This standard was issued on February 3, 1999. Published on 10 June 1999, and implemented on 1 June 1999. Appendix A of this standard is the appendix of the standard. Appendix B of this standard is the appendix of the suggestion. This standard was proposed and approved by China National Offshore Oil Corporation. Drafting unit of this standard: China Offshore Oil Production Research Center. Main drafters of this standard: Yue Yunfu, Chief Reviewer of this standard: Lv Bingchu. Policy Statement. Offshore oil and gas industry standard publications only address specific issues. When it comes to specific situations, national and local laws and regulations should be consulted. Offshore oil and gas industry standard publications do not assume the responsibility of providing users, manufacturers or suppliers with advance notice and training on health, safety and hazard prevention for their personnel and other on-site operators. Nor do they assume the responsibility! They act under [national and local laws and regulations: The contents of any offshore oil and gas industry standard publication shall not be interpreted, implicitly or otherwise, as granting any right to make, sell or use any method, equipment or product involving patent rights, and shall not bear any liability for any person infringing the patent rights. Generally, offshore oil and gas industry standards are reviewed, revised, re-identified or revoked at least every five years: Sometimes, this review cycle can be extended for years, but not more than two years. Therefore, the validity period of the publication shall not exceed one year from the date of publication, unless the validity period is extended by authorization. The information of the materials can be obtained from the Secretariat of the Technical Committee for Standardization of Offshore Oil and Gas Industry (Tel. 010-64610022-7875, mailing address: Beijing 235 Offshore Oil Research Center Standardization, zip code 101149) or the Technical Committee for Standardization of Offshore Oil and Gas Industry (Tel. 01064665361, mailing address: Beijing Sanyuanqiao 25 Offshore Oil Science and Technology Office, zip code 100027). The purpose of publishing the standards of offshore oil and gas industry is to promote the good engineering technology and operating practices that have been proven. It is not intended to constitute the necessity of correctly judging when and where to apply these technologies and practices. The formulation and publication of standards of offshore oil and gas industry is not intended to in any way This standard is available to anyone who wishes to adopt it. The Offshore Oil and Gas Industry Standardization Technical Committee and its authorized issuing units have made every effort to ensure the accuracy and reliability of the data contained in it. However, the Offshore Oil and Gas Industry Standardization Technical Committee and its authorized issuing units do not act as agents, warranties or guarantees for the standards they publish, and hereby expressly state that they will not be responsible for any loss or damage caused by the use of these standards, for the use of standards that may conflict with any national and local regulations, and for the consequences of infringement of any patent rights caused by the use of these standards. The Offshore Oil and Gas Industry Standardization Technical Committee and its authorized issuing units do not bear any obligations and responsibilities.
The Recommended Method of Offshore Oil/Gas Field DevelopmentProject Economic EvaluationPart 1: Self-financed Offshore Oil/Gas Field1Scope
This standard specifies the technical requirements for economic evaluation of offshore oil (gas) field development. This standard applies to offshore oil (gas) field development project economic evaluation. 2Definition
2.1Development and construction period
SY/T 10023.1—1999
refers to the period from the date of approval of the overall development plan to the date of the start of oil (gas) production. 2.2 Production period
refers to the period from the start of oil (gas) production to the date when the annual sales revenue of the oil (gas) produced after deducting various sales taxes is insufficient to cover the operating costs (operating expenses, sales expenses and non-interest expenses). 2.3 Total cost
includes operating costs, interest expenses, depreciation of development investment and exploration expenses incurred immediately. 2.4 Operating costs include production and operation costs, sales costs and non-interest expenses. 2.4.1 Oil (gas) field production and operation costs refer to the sum of all direct and indirect consumption costs for maintaining normal production of oil (gas) fields: including consumed materials, spare parts, fuel, power and direct production personnel's capital and other direct expenditures: service fees for ships, communications, helicopters, etc.; repair costs of oil (gas) production facilities: costs of pressure measurement, repair, inspection, production increase measures, etc. of (gas) lifts; maintenance costs; 2.4.2 Sales expenses refer to the various expenses incurred by enterprises in the process of selling oil (gas), as well as the various expenses of special sales agencies: including transportation fees, loading and unloading fees, packaging fees, insurance premiums, agency fees, advertising fees, exhibition fees, rental fees and sales service fees borne by the enterprise, sales department staff wages, employee welfare expenses, travel expenses, office expenses, discount fees, repair fees, material consumption, low-value consumables amortization and other expenses. 2.4.3 Non-interest expenditures include production expenses, The net exchange loss, foreign exchange adjustment fee, financial institution handling fee and other non-interest financial expenses incurred in financing.
2.5 Taxable income
refers to the total profit of the project after deducting the total cost, sales tax and annual sales revenue. If the project incurs a loss in the first year, it can be offset by the pre-tax profit of the next year. If the profit of the next year is insufficient to offset the loss, it can be offset within five years.
2.6 Total project investment
Approved by the State Administration of Petroleum and Chemical Industry on March 1, 1999, implemented on June 1, 1999
SY/T10023.1-1999
refers to the exploration investment, development investment, investment direction adjustment tax, construction period interest of development investment loan and working capital to be incurred.7 Internal rate of return (IRR)
refers to the discount rate when the present value of net cash flow of each year in the entire calculation period of the project is equal to zero. It reflects the profitability of the funds occupied by the project and is the main dynamic evaluation indicator for examining the profitability of the project. 2.8 Net present value (NPV)
refers to the sum of the present values of net cash flow of each year in the calculation period of the project discounted to the beginning of the construction period according to the benchmark rate of return of the industry. It is the main dynamic evaluation indicator for examining the profitability level of the project during the calculation period. 2.9 Payback period (Pt)
refers to the time required for the net income of the project to offset the total investment. It is the main static evaluation indicator for examining the financial investment recovery ability of the project. The payback period (expressed in years) should be calculated from the year of construction. If it is calculated from the year of production, it should be noted. 2.10 Investment profit rate
refers to the ratio of the average annual profit during the production period of the project to the total investment of the project. It is a static indicator for examining the profitability of the unit investment of the project. 2.11 Investment profit and tax rate
refers to the ratio of the average annual profit and tax during the production period of the project to the total investment of the project. 2.12 Asset-liability ratio
refers to the ratio of total liabilities to total assets. 2.13 Current ratio
is the ratio of total current assets to total current liabilities. 2.14 Quick ratio
is the ratio of the difference between total current assets and inventory to current liabilities. 3 Principles and implementation requirements of economic evaluation
3.1 Principles
3.1.1 Take economic benefits as the core.
3.1.2 The calculation date of costs and benefits should be consistent. 3.1.3 Adopt the economic model stipulated by the national planning department. 3.2 Requirements
3.2.1 Analysis method
Use a dynamic and static combination method with dynamic analysis as the main and static analysis as the auxiliary. 3.2.2 The evaluation requirements for the rolling development of multiple fault-block oil (gas) fields can be decomposed into individual fault-block oil (gas) fields for separate evaluation, or the entire region can be evaluated as a whole to calculate the total benefits and total costs. When the overall evaluation method is adopted, since the production and benefits of the developed oil (gas) fields during the construction period of the subsequent development of oil (gas) fields are included, the interest is not included in the total investment, but in the financial expenses of the cost
3.2.3 Price forecast
The forecast price based on the domestic and foreign market prices at that time is adopted. When estimating the investment, the price increase factor should be considered during the construction period. The overall price level during the production period is based on the overall price level of the year of production, and the constant price is adopted. 3.2.4 Calculation currency
The calculation currency is RMB, but the amount of foreign exchange in it must be indicated. 3.2.5 Calculation period unit
The calculation unit is year, and the year-end method is adopted. 3.2.6 Basic work
The collection, collation, calculation and analysis of basic data and economic parameters must be done well. The annual oil production, gas production, engineering investment, operating costs, sales price, engineering progress, etc. adopted must be detailed and accurate to avoid repeated calculations or intentional expansion and reduction, which will cause distortion of the evaluation results.
4 Basic data for economic evaluation
4.1 Construction period and production period
Construction period: determined according to the project's engineering progress. Production period: The production period of the evaluation shall not exceed 20 years. 4.2 Exploration investment
The exploration investment that has occurred will not be included in the cash flow, but the exploration investment must be recovered. 4.3 Total Project Investment
Total Project Investment = Project Investment (Exploration Investment to be incurred + Development Investment) + Price Increase Reserve + Construction Period Interest + Working Capital for the Base + Investment Direction Adjustment Tax The total project investment will all form fixed assets. 4.3.1 Exploration Investment
is the estimated geophysical exploration fee, geochemical exploration fee, operation fee, extended testing fee, evaluation fee and other fees. 4.3.2 Development Investment
includes direct engineering costs, indirect costs and reserve. 4.3.2.1 Direct Engineering Costs
include drilling and completion engineering costs, offshore engineering facilities fees, onshore facilities and supporting engineering costs, submarine pipelines and cables, etc. 4.3.2.2 Indirect Costs
include production preparation fees, design fees, management fees, insurance, personnel fees, etc. 4.3.2.3 The reserve fund
is composed of unforeseen expenses and price difference reserve fund: a) unforeseen expenses (basic reserve fund); b) price difference reserve fund
The calculation formula is:
C-2G,[(1+a)--1 -1]
Where: C
Price difference reserve fund:
The annual cost of the development engineering cost calculated at the price of the year when the overall development plan is prepared during the construction period; Number of years in the construction period:
The construction period, year;
The interval from the investment valuation year to the project implementation year, unit: year; The development engineering cost increase index, announced by the competent department, development investment and its construction period interest are not divided into tangible assets and intangible assets, and are amortized evenly within 6 years after the project is put into production. 4.3.3 Construction period interest
Use the compound interest method, calculate interest on an annual basis, and calculate foreign currency and RMB separately. The interest accrued each year before the project is put into production.
Calculation formula:
Annual interest = (accumulated principal and interest of loans at the beginning of the year + amount of loans this year/2) × annual interest rate 4.3.4 Working capital and working capital for the base
4.3.4.1 Working capital
refers to all the turnover funds occupied to maintain production, which is the difference between current assets and current liabilities. 4.3.4.2 Working capital for the base
Calculated at 30% of working capital.
4.3.5 Investment direction adjustment tax
SY/T 10023.↑—1999
Implemented in accordance with the relevant regulations of the national planning department and the State Administration of Taxation, see Appendix B, 4.4 Annual investment
Gencuo project daily project progress calculation, list the annual investment, see Appendix A. 4.5 Operation fee
Should be calculated and the necessary text description should be added. 4.6 Oil (gas) price
Oil (gas) price and its determination card basis. 4.7 Shantou (gas) production
According to the determined development plan, deduct the self-use amount from the annual output provided by the geology, and list the commodity quantity of various products. 4.8 Proportion of own funds and loans
Generally calculated as 30% of own funds and 70% of loans. If there are special requirements, detailed descriptions shall be given. 5 Economic evaluation parameters
According to the annual economic evaluation parameters notification of the superior competent department, if adjusted, the reasons for adjustment shall be stated: 5.1 Oil (gas) price increase rate (±%)
During the construction period, the predicted oil (gas) price increase rate. 5.2 Price increase rate (±%)
Should include:
a) Domestic price increase rate (±%);
h) International price increase rate (±%).
5.3 Loan interest rate
Should include:
a) RMB fixed asset loan interest rate (±%);
h) US dollar loan interest rate (±%);
() Working capital loan interest rate (local%): 5.4 Exchange rate
The exchange rate between foreign exchange and the RMB,
5.5 Tax rate
Implemented in accordance with relevant national current tax laws and regulations. Mainly including: a) Value-added tax rate (general): | |tt||h) Urban construction tax and education surcharge (%); () Resource tax rate (%);
d) Mining area usage fee rate (%);
e) Income tax rate (%):
See Appendix B:
5.6 Standard evaluation indicators
Benchmark rate of return: According to the benchmark rate of return issued by the superior land management department 6 Economic evaluation indicators and calculation methods
6.1 Basic evaluation indicators
6.1.1 Internal rate of return
The internal rate of return is calculated based on the net cash flow in the cash flow statement. 4
The expression is:
GI--cash inflow;
CO--cash outflow:
SY/T 10023.1—1999
≤(CI- CO),(1+ IRR)\*=0
(CI-CO).-Net cash flow in the first year:-Calculation period:
In economic evaluation, the internal rate of return of the total investment and own funds is calculated: and the internal rate of return of the total investment is compared with the basic rate of return of the industry (1,). When three! , it is considered that the profitability of the project has met the minimum requirements and is economically feasible. 6.1.2 Net present value
The net present value can be calculated based on the cash flow statement. The expression is:
NPV- E(CI - CO),(1 + i.)-
The project with NPV greater than or equal to zero is economically feasible 6.1.3 Payback period
The payback period can be calculated based on the cumulative net cash flow in the cash flow statement (total investment). The calculation formula is:
-absolute value of cumulative net cash flow in the previous year,
Payback period (P) = number of years when L starts to appear positive cumulative net cash flow
Net cash flow for the year
In economic evaluation, the calculated payback period (P) is compared with the industry's benchmark payback period (P). When P≤P, it indicates that the project investment can be paid back within the expected time.
6.2 Auxiliary indicators
6.2.1 Investment profit rate
The investment profit rate is calculated based on the relevant data in the appendix. In the economic evaluation, it is used to judge the profitability of the project. The calculation formula is:
6.2.2 Investment profit and tax rate
Investment profit rate = After-tax profit to the end of the year × 100% Total project investment
The investment profit and tax rate is calculated based on the relevant data in Table A7 of the Appendix. In the economic evaluation, it is used to judge the contribution of investment to national accumulation:
The calculation formula is:
Profit and tax amount
Investment profit and tax rate:
Total investment
6.2.3 Asset-liability ratio
The calculation formula is:
Asset-liability ratio
6.2.4 The calculation formula of current ratio
is:
Total liabilities
×100%
Total assets
Total current expenses×100%
Total current assets
Current ratio
6.2.5 Quick ratio
The calculation formula is:
7 Economic evaluation report
7.1 Basic data table
SY/T10023.1—1999
Quick ratio-total current assets-inventory
Total current liabilities
Includes annual investment, output, operating cost table and economic evaluation parameter table, 7.2 Summary table of economic evaluation indicators
See Table A4 for the summary table.
7.3 Basic statements
Include:
a) Cash flow statement (total funds);
b) Cash flow statement (own funds);
c) Profit and loss statement;
d) Statement of sources and uses of funds;
e) Balance sheet.
7.4 Auxiliary reports
Include:
a) Investment estimate summary table;
b) Working capital estimate table
c) Investment plan and fund raising table;
d) Depreciation and amortization estimate table;
e) Sales revenue and sales tax and additional calculation table; f) Operating cost estimate table;
g) Total cost table;
h) Loan principal and interest payment table
7.5 Report format
The report format should be in accordance with the appendix
8 Uncertainty analysis
8.1 Sensitivity analysis
8.1.1 Determine the analysis indicators
According to the indicators calculated by the above economic evaluation method, such as internal rate of return, net present value, payback period, etc., according to the depth of economic evaluation and different requirements of the project, select the internal rate of return or add other indicators to conduct sensitivity analysis. 8.1.2 Selected sensitivity factors
Oil (gas) production, oil (gas) price, development investment or other factors such as production and operation costs should be selected as required. Sensitivity analysis does not consider force majeure factors such as natural disasters
8.1.3 Analysis and calculation
For each selected sensitivity factor, calculate the corresponding economic indicator value according to the assumption that the single factor increases or decreases by a certain percentage (such as 5%, 10%, 15%, 20%, etc.). See Table A4 in Appendix A.8.1.4 Summarize the analysis results
The calculation results should be expressed in the form of a table or graph, showing the rate of change of economic indicators with the change of sensitivity factors, judging the sensitivity of the selected factors to the project economy, and determining the most sensitive factors. 8.2 Critical value analysis
Respectively calculate the values of output, price, investment and operating cost when the internal rate of return of the project is the required critical value, indicating the project's bearing capacity6
9 Method of scheme comparison
9.1 Method of scheme comparison
SY/T10023.1-1999
Several methods can be used, such as differential investment internal rate of return method, net present value method, annual value method, net present value rate method, cost present value comparison method or annual cost comparison method.
9.1.1 Differential investment internal rate of return method
The differential investment internal rate of return is the discount rate when the sum of the present values of the net cash flow differences of the two schemes in each year is equal to zero. The expression is:
[(CI-CO)-(CT-CO),J(1+ AIRR)-=0 Where:
(CI-CO)
(CI-CO)u
Financial internal rate of return of differential investment: wwW.bzxz.Net
Net cash flow of the plan with large investment in the tth year Net cash flow of the plan with small investment in the (th year; calculation period.
When comparing the plans, the internal rate of return of the differential investment can be calculated as above and compared with the benchmark rate of return. When △IRR≥benchmark rate of return, the plan with large investment is preferred. Conversely, the plan with small investment will be the preferred plan. Compare multiple plans When comparing, the investment amount should be sorted from small to large, and the adjacent plans should be compared in pairs to select the best plan. 9.1.2 Net Present Value Method
Compare the calculated net present values of each comparison plan, and the plan with the larger net present value is the best. 9.1.3 Annual Value Method
Compare the calculated equivalent annual value (AW) of the net benefit of each comparison plan, and the plan with the larger annual value is the best. The expression is:
AW-[(SI-C+S+W).CPIF.80(AIP,i,n) or AW=NPV(AIP,i n)
Where:
【——Total investment in a year (including fixed asset investment and working capital); sales revenue in a year
Operating expenses in a year:
——Residual value of fixed assets recovered at the end of the calculation period: -Working capital not recovered during the calculation period
(PIF, i, t) —Present value coefficient:
(A/P, i, n)-
9.1.4 Net present value rate method
——Fund recovery coefficient;
Benchmark rate of return.
Net present value rate (NPVR ) is the ratio of net present value to investment present value. The net present value rate describes the excess net benefit obtained by the unit investment of the program. When using the net present value rate to compare programs, the program with a larger net present value rate is preferred. The calculation formula is:
Where: le——present value of the total investment of the program. 9.1.5 Cost Present Value Comparison Method (abbreviated as Present Value Comparison Method) NPV
Calculate the cost present value (PC) of each comparison program and compare them. The program with a lower cost present value is preferred. The expression is:
9.1.6 Annual Cost Comparison Method
SY/T 10023.1-1999
PC-(I+ C- S, -W)(PIF,1,t)
Calculate the equivalent annual cost (AC) of the alternatives for comparison, and the one with the lower annual cost is preferred. The expression is:
AC =[Z(I + C-St - W),(PIF.tt)I(AIP,1.n) or AC = PC(A/P,t,n)
9.2 Scope of application of winter comparison method
9.2.1 Under the condition of unchanged capital constraints, the internal rate of return method of differential investment, present value method or annual value method should be adopted. When there are obvious capital constraints, the net present value rate method should be adopted.
9.2.2 When the benefits are intermittent or basically the same, the cost present value method or annual cost comparison method should be adopted. 9.2.3 When two plans have the same output or the same cost, the static difference investment rate of return method or the static difference investment payback period method should be used. 10 Economic evaluation of renovation and expansion projects
10.1 Characteristics of renovation and expansion projects
Oil and gas renovation and expansion projects are reconstruction, expansion, restoration, adjustment and transformation of old oil fields based on the original facilities. Such projects have the following characteristics:
a) The original assets and resources are utilized to varying degrees; b) The renovation and expansion projects have an impact on the existing production and operation activities; c) The construction and production are carried out in parallel during the construction period. 10.2 Special provisions
In view of the above characteristics, the economic evaluation of renovation and expansion projects should not only follow the principles and basic methods of economic evaluation of new construction projects, but also follow the following special provisions in its physical method: a) the principle of consistency between incremental costs and incremental benefits should be maintained in the evaluation; b) the principle of incremental benefits being greater than incremental costs should be maintained; c) only a brief economic analysis should be conducted for projects that have no direct impact on incremental benefits and incremental costs.2 Special provisions
In view of the above characteristics, the economic evaluation of renovation and expansion projects should not only follow the principles and basic methods of economic evaluation of new construction projects, but also follow the following special provisions in its physical method: a) The principle of consistency between incremental costs and incremental benefits should be maintained during evaluation; b) The principle of incremental benefits being greater than incremental costs should be maintained; c) For projects that have no direct impact on incremental benefits and incremental costs, only a brief economic analysis should be conducted.
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